CREDIT SUPPORT FOR THE ANIMAL BREEDING IN UKRAINE

The article is dedicated to the research of credit support for Ukrainian agriculture, and, in particular, animal breeding. The structure of credit support for branches of the Ukrainian economy has been analyzed, and the reasons for a low level of agriculture credit provision have been identified. The author expressed the thought that the excessive rate of risks, unconformity of planned and factual volumes of production, and insufficient warranties from the state account for the low level of branch financing. The volumes and market share of the credits provided from 2006–2018 have been analyzed, and a positive dynamic has been discovered. Nevertheless, it bears mentioning that the financing does not meet the demands of the branch. The majority of business facilities require renewal of their material-technical base and production modernization. The Hodrick-Prescott filter has been proposed in order to define the cyclic tendencies in this time period, and the reasons for the upward trends have been established, in particular: the increase in export volumes and capital investments into agriculture. A projection has been calculated regarding the increased financing for both animal breeding and agriculture on the whole, and the easy-term loan system for agricultural enterprises has been researched. The drawbacks and advantages of the easy-term loan provision mechanism have also been analyzed in detail. Special attention has been lent to the state of easy-term loan attraction by the business facilities of the animal breeding sector. The decrease in market share of provided credits, as well as the increase in the number of business facilities that breed both dairy big horned livestock and other big horned livestock, facilities which have been received credit resources, have been calculated. The author has concluded that the level of credit provision does not meet the demands of the sector. A simplification of the current easy-term loan system for agrarian goods producers has been recommended. Emphasis has been placed on taking into account both the seasonality of production, as well as the productivity of cattle in the animal breeding branch with easy-term credits provision. It has been determined that, for further research, the analysis of credit provision time, interest rates, and currencies is required, which would facilitate the discovery of the most efficient credit conditions for animal breeding business facilities.